Allowed

Pragathi Krishna Gramin Bank v. Gunderao

DRT24 Feb 2026OA/1139/2023

Case brief

AI extract

What is this about?

DRT allowed application for recovery certificate against defendants for default in agricultural loans. Tribunal issued order for realization of principal and reduced interest (6%) from joint and several assets.

What did the court decide?

Recovery certificate issued for aggregate sum of Rs. 28,99,347.59 including interest at 6% p.a. from defendants jointly, severally and personally and against schedule property.

Pragathi Krishna Gramin Bank versus Gunderao — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of February, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1139/2023

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BETWEEN:

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Karnataka Gramin Branch Narona Branch, Aland Taluk, Kalaburgi District

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Represented by its Branch Manager

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Sri. Arun Kumar …APPLICANT

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AND:

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Sri. Gunderao S/o. Peerappa Shivalingappagol Aged about 47 years

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Sri. Gajanand S/o. Peerappa Shivalingappagol Aged about 46 years

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Both are r/at: Kuni Sangavi Village,

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Aland Taluk, Kalaburgi District – 585 316 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T S Mahabaleswara Defendants : Ex part

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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OA-1139/2023

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 28,99,347.59/- (Rupees Twenty Eight Lakhs Ninety Nine Thousand Three Hundred and Forty Seven and Paisa Fifty Nine Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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Term loan of Rs. 6,00,000/- (Rupees Six Lakhs Only) for the purpose of purchase of tractor & trailer and accessories.

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ATL loan of Rs. 50,000/- (Rupees Fifty Thousand Only) for the purpose of development of beetle leaves plantation.

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Crop loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for purpose of purchase of seeds, fertilizer and pesticides.

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Crop loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for purpose of purchase of seeds, fertilizer and pesticides.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with Registered mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA-1139/2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 19.09.2024.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-30 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA,

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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OA-1139/2023

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1139/2023 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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28,99,347.59/- (Rupees Twenty Eight Lakhs Ninety Nine Thousand

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Three Hundred and Forty Seven and Paisa Fifty Nine Only)

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a. 21,28,945.58/- (Rupees Twenty One Lakhs Twenty Eight Thousand

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Nine Hundred and Forty Five and Paisa Fifty Eight Only) under ATL loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1 & 2:

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b. Rs. 1,69,841.63/- (Rupees One Lakhs Sixty Nine Thousand Eight

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Hundred and Forty One and Paisa Sixty Three Only) under ATL loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.2:

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c. Rs. 3,34,845.39/- (Rupees Three Lakhs Thirty Four Thousand Eight

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OA-1139/2023

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Hundred and Forty Five and Paisa Thirty Nine Only) under Crop loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1:

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d. Rs. 2,65,714.99/- (Rupees Two Lakhs Sixty Five Thousand Seven

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Hundred and Fourteen and Paisa Ninety Nine Only) under Crop loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.2:

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After giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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OA-1139/2023

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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14. Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 24^th Day of February, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Sri. Arun Kumar, S/o. Sri. Shivayogi, Branch Manager, of Applicant Bank

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	16.12.2006	Loan application executed by defendants along with translation
A2	13.12.2006	Registered mortgage deed executed by the defendants
A3	08.12.2009	Revival letter executed by defendants
A4	06.12.2012	Revival letter executed by defendants
A5	11.11.2015	Revival letter executed by defendants
A6	24.09.2018	Revival letter executed by defendants
A7	10.08.2021	Revival letter executed by defendants
A8	24.09.2018	Acknowledgements of security/liability from the mortgagor executed by defendants

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OA-1139/2023

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A9	-------	Loan account statement
A10	19.02.2009	Loan agreement executed by defendants no.2 along with translation
A11	30.07.2011	Revival letter executed by defendant no.2
A12	10.02.2014	Revival letter executed by defendant no.2
A13	31.01.2017	Revival letter executed by defendant no.2
A14	20.12.2019	Revival letter executed by defendant no.2
A15	06.12.2022	Revival letter executed by defendant no.2
A16	--------	Statement of account extract
A17	30.07.2012	Loan agreement executed by defendant no.1 along with translation
A18	11.07.2012	Registered mortgage deed executed by the defendant no.1
A19	01.06.2015	Revival letter executed by defendant no.1
A20	05.05.2018	Revival letter executed by defendant no.1
A21	20.04.2021	Revival letter executed by defendant no.1
A22	--------	Statement of account extract
A23	24.07.2012	Loan agreement executed by defendant no.2 along with translation
A24	11.07.2012	Registered mortgage deed executed by the defendant no.2
A25	21.03.2015	Revival letter executed by defendant no.2
A26	01.03.2018	Revival letter executed by defendant no.2
A27	24.02.2021	Revival letter executed by defendant no.2
A28 to A29	08.12.2022	Office copy of legal notices two numbers
A30	--------	Loan accounts statements

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Pragathi Krishna Gramin Bank v. Gunderao

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Gunderao

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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